In the upcoming Union Budget 2022-23, real estate developers are seeking an increase in the limit of home loan interest deduction for tax rebate to ₹5 lakh from current ceiling of ₹2 lakh, a review of definition of affordable housing, lower long-term capital gains tax for real estate and new provisioning for rental housing. Realty developers’ body CREDAI has written to the Finance Ministry to suggest exemption in tax to investments in Real Estate Investment Trusts (REITs) starting with ₹50,000 and to allow tax-neutral consolidation of businesses through merger or amalgamation to push rescue of stalled housing projects helping troubled homebuyers.
“We expect the upcoming budget to provide the much-needed impetus to infrastructural development, and housing by introducing various amendments, relaxations & extensions which will be helpful for realizing the Prime Minister’s dream of Housing for All and faster economic recovery,” said President, CREDAI, Harshvardhan Patodia.
Deepak Goradia, President, MCHI, said, “We are hopeful that the upcoming budget will bring realty under the infrastructure status which in turn will unlock multiple tax benefits to boost foreign and local investment and the overall demand in the sector. Amendments in the definition of affordable housing in terms of counting the ticket size of the apartment instead of area, new provisions for encouraging rental housing, single-window clearances, input tax GST credit for developers are some key reforms that need to be considered for expediting economic recovery.”